|Sprint Statement on Closing of Clearwire Debt Offering|
Posted: 14-Dec-2010 [Source: Sprint]
[Sprint releases statement announcing it has created flexibility in efforts to avoid risk relating to debt agreements because of its voting interest in Clearwire.]
Overland Park, Kan. -- Sprint issues the following statement in response to the closing of Clearwire Corporation’s private debt offering.
We are pleased that Clearwire has been able to secure third-party funding, which demonstrates its strength as a wholesale provider of 4G network service to Sprint.
As a result of Clearwire’s sale of exchangeable notes, Sprint has preemptive rights for a period ending on Jan. 2, 2011, to elect to acquire up to its pro-rata share of exchangeable notes, if it chooses to do so. No decision on whether to exercise its preemptive rights has been made by Sprint. Sprint continues to hold discussions with Clearwire regarding further investment in the company but has no plans at present to acquire Clearwire.
In addition, Clearwire, Sprint and the other parties to the Clearwire Equityholders’ Agreement amended that agreement to permit, among other things, that Sprint may, at any time, unilaterally surrender voting securities to reduce its voting security percentage below 50 percent. Sprint now has additional flexibility to avoid any risk that Sprint incurs a default under its debt agreements because of its voting interest in Clearwire. Any reduction would only affect Sprint’s voting shares in Clearwire. Sprint’s economic interest in Clearwire would not be affected.
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